More mortgages available – but not necessarily more lending

The number of mortgage products available to prime residential borrowers has hit 3,035, the highest level since February 2008.
 
At the peak of the banking crisis in 2009, the number fell to just 1,209.
 
But, says Moneyfacts, increased products does not mean increased lending.

It warns that while the number of mortgages may be equal to those available a few years ago the market remains a very different place. 

In February 2008, customers with a 10% deposit or less still had their pick of the majority of mortgages on the market. Today those same customers have seen a four-fold drop in the number of mortgages available.
 
Michelle Slade, spokesperson for Moneyfacts, said: “By increasing the number of mortgages, lenders are showing that they are open for business.
 
“Rising product numbers bring more competition, which has brought more keenly priced mortgage deals to the market.
 
“Lenders are becoming more accommodating with their lending criteria, which bodes well for increasing the competitiveness in the mortgage market.
 
“Average mortgage rates have fallen to all-time lows, while at the same time deposit requirements are easing.
 
“First-time buyers are finally being given some options as the number of deals available to borrowers with a 10% deposit or less continues to grow.
 
“Recent lending figures show that while the number of mortgages being approved is rising, we are still a long way off the levels seen in previous years.
 
“Increased availability of mortgage products does not mean increased mortgage lending.
 
“Affordability remains a key factor, so lenders continue to target remortgagers with sizable deposits who already have a proven payment history.”